A fixed acquirer network fee is an amount that financial institutions charge merchants for each credit or debit card transaction. The fee varies from merchant to merchant and can be based on a percentage of the purchase price, a flat rate per transaction, or even higher if there is a minimum transaction size.
When does fixed acquirer network fee Applies?A fixed acquirer network fee is charged by the bank of the merchant's card machine every time you swipe your credit or debit card. Merchants are limited in how much they can charge customers for fixed acquirer network fees, but this fee usually ranges from 2 to 3 percent of each transaction.
The amounts listed below are stated in USD.
Who pays the fixed acquirer network fee?The merchant is usually responsible for paying this fee. However, a large number of merchants choose to pass on the expense of these fees through higher prices for goods and services. In some cases, larger merchants can negotiate with financial institutions to have them absorb a certain percentage of the fixed acquirer network fee.
What does this fixed acquirer network fee pay for?This fee, often called a MIF (merchant input format) or MSC (merchant service charge), pays for processing credit and debit card transactions through the bank who issues your card. In other words, you are paying a fixed acquirer network fee every time that you use your credit or debit card to make purchases.
Fee DisclosureFinancial institutions are required to disclose the fixed acquirer network fee before a consumer can use their cards, according to guidelines set by Visa and MasterCard. However, some merchants choose not to tell customers about this fee when they swipe their cards.
What Should Merchants do?While it is difficult to determine what fees are charged at particular stores, merchants can find out how much they are being charged for processing credit and debit card transactions by checking with the bank who issues their payment machines. Merchants may choose to pass on these costs to customers through higher prices if that works best for your business model.
